Indian Bank Q3 Results: The public sector lender Indian Bank on Wednesday, January 29, posted a 34.58% year-on-year (YoY) growth in the standalone net profit for the third quarter of the financial year 2024-25 (Q3 FY25) to ₹2852.36 crore. The profit figure stood at ₹2119.35 crore in the same period last year.
On a quarter-on-quarter (QoQ) basis, Indian Bank’s profit increased by 5.39% from ₹2,706.44 crore posted in the September quarter of FY25.
The net interest income (NII) during the quarter under review came in at ₹6,414.72 crore, up 10.32% from ₹5,814.19 crore posted in Q3 FY24 and 3.55% as against ₹6,194.22 crore posted in the preceding quarter of current fiscal.
The PSU bank witnessed an improvement in non-performing assets (NPA), with the amount of gross NPA declining to ₹18,208.35 crore from ₹22,786.5 crore on a YoY basis. Even sequentially, the gross NPA in Q3 FY25 was lower than ₹19,148 crore in Q2 FY25. The net NPA stood at ₹1,126.86 crore in Q3, down from ₹1,445.29 crore in Q2 and ₹2,578.72 crore in Q3 last fiscal.
Subsequently, the percentage of gross NPAs improved to 3.26% in the December 2024 quarter from 4.47% in the corresponding quarter last year. The figure was also slightly better than 3.48% in the September 2024 quarter.
The percentage of net NPA came in at 0.21%, down from 0.53% on a YoY basis and 0.27% on a QoQ basis.
The margin performance of the PSU lender also remained strong, with the operating margin coming in at 26.52% in the quarter under review as against 25.45% in the same quarter last fiscal. Similarly, the net profit margin was at 15.92%, significantly higher than 13.16% in the year-ago period.
Earnings Impact
Following the strong earnings announcement, Indian Bank share price spiked 7% to the day’s high of ₹551 on the BSE. As of 1.55 pm, Indian Bank share was at ₹541.30, up 5.18%.
